For some Canadians, payday loans are great life-savers. This loan product enables one to have instant cash without having to wait for several more days till payday comes. However, without adequate knowledge about the ins and outs of a payday loan, a borrower can be suddenly confronted by huge payment obligations for a meager short-term loan.

The site www.paydayloans.ca is a great online tool to help Canadians learn more and understand better the concept of pay day loans.

Payday loans are short-term loans with small values intended to cover a borrower's immediate or pressing expenses until the next payday. The loan is guaranteed against the security of the next payday's salary.

Payday loans can be granted from $100 up to a thousand Canadian dollars. A payday loan interest limit of 21% is in effect in Canada. This could go lower in some Canadian provinces like Manitoba, but not higher.

This site emphasizes that payday loans are quick to be granted but they often incur huge interest rates when compared against a longer-term loan. This is due to the short payment turnaround (two weeks) and the compounding interest computation, where interests accumulated daily become part of the principal, further increasing the interest rate.

Despite the exorbitant interest fees associated with payday loans, it cannot be denied that many Canadians turn to it as a lifeline to get through urgent and cash-strapped days. The advantages include high approval rate and instant cash availment for the borrower. With the help of this this site, you can distinguish between the advantages and disadvantages of payday loan, and will learn that good and sound personal financial management is the key to all money woes, including payday loan payment woes.